Industry News – What Is An iBuyer?

Industry News

Have you heard the news that iBuyers may change the landscape of real estate in the United States? 

Have you heard that they are in Central Ohio, or maybe you have even received a letter from one in the mail asking you to sell your house?  Are you also confused about just what an iBuyer is?  Well you’re not alone.  I’ve had quite a few questions on this topic and thought I’d write a quick explanation so that everyone could understand.

Getting back to the question, “What is an iBuyer?” It’s simple, an iBuyer is an investor or a company that uses an automated valuation model (AVM – think fancy spreadsheet) to quickly make you an offer to purchase your house.  Most of the time, the offer is for cash with flexible other terms that are advantageous to you. 

The offers are sometimes ridiculously low and sometimes they are just a little low but unless they make a mistake, they’re likely not at market value or above.  In general, you would do better to list your house with a Realtor® if getting the most money was important to you. 

That said, for some people it’s not about the money.  It is more about controlling the other terms in the sale, such as the closing date and selling as-is, etc. and so it might be a good solution for them. Once they buy your house, the iBuyer may invest some additional money to fix it up and sell it or they may just rent it out for the long term, with the latter being the most common in our area. 

Now that you know what an iBuyer is, you may have many other questions, like Who are these iBuyers, Why do iBuyer’s exist, and Is the iBuyer interested in my old iPhone?   I’ll address the first two questions in a future post and as for the latter, I’m guessing that you probably know that answer to that one. 

If you have questions about this or anything else real estate related, my team and I are always analyzing the market and are up on the cutting edge of real estate, so feel free to reach out…

…Helping YOU Is What We’re Here To Do! 

 

 

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